Report: DSME Workers Ready to Accept Wage Cuts, Propose Talks

Image Courtesy: DSME

Labor union of the South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) is ready to accept proposed wage cuts for workers, proposing talks with the government, the company’s management and creditors, which are aimed at finding a way to save the financially troubled shipbuilder, Yonhap News Agency reports

The announcement comes a day after DSME’s creditors unveiled a new restructuring plan for the company, which includes KRW 2.9 trillion (USD 2.6 billion) of fresh funds.

Creditors including Korea Development Bank (KDB) and Export-Import Bank of Korea (KEXIM) have devised a restructuring plan which sets out three key principles – debt restructuring should come first, financial assistance should follow later, and all stakeholders should bear a burden of losses.

The funds will be provided to DSME only if all stakeholders involved agree on debt restructuring, and the shipbuilder carries out intensive self-rescue efforts.

According to the creditors, DSME will have to cut 25 percent of its personnel costs and reduce its workforce by 1,000 workers.

Without the financial support from the banks, DSME is likely to declare bankruptcy, Yonhap cited the Financial Services Commission (FSC) as saying.

The shipbuilder’s financial results for 2016 show that DSME reduced its full-year loss to KRW 2.7 trillion (USD 2.4 billion) from KRW 3.3 trillion (USD 2.9 billion) seen in 2015.

The company’s operating loss was also reduced and amounted to KRW 1.6 trillion in 2016, against an operating loss of KRW 2.9 trillion recorded a year earlier.

DSME managed to trim its loss having committed to a stringent self-rescue plan that entailed disposal of its non-core assets, such as its IT business, as well as its buildings and floating docks with a total worth of around KRW 500 billion.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jan 2018 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Mega Cargo Show 2018

The focus of the event is to bring all connected with cargo fraternity on a single platform…

read more >

Vietship 2018

Vietship is the largest and longest established exhibition in Vietnam featuring all aspect of Shipbuilding, Shipping and Offshore Technology.

Since its first event in 2002, Vietship has become the convergence and platform of advanced technologies regional and worldwide in shipbuilding and ship repair, marine equipment, waterway transportation and services, marine and offshore engineering.

After 16 years of eight consecutive editions, Vietship has affirm itself as an important event in enhancing cooperation and development, attracting investments, exchanging technology and creating ideal opportunities for trade promotion in the international maritime industry.

More info

read more >

LNG Bunkering Summit 2018

The conference will cover the obstacles facing both the shipping and port communities, exploring developments in conversion and new builds…

read more >